BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 301 - Wright Hearing
Date: July 13, 1999 A
As Amended: July 7, 1999 FISCAL B
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DESCRIPTION
Current law permits the California Public Utilities
Commission (CPUC) to modify its decisions after giving
proper notice and giving parties an opportunity to be
heard.
This bill requires the CPUC to permit interested parties to
petition to adopt, amend, or repeal any regulation adopted
by the CPUC. The CPUC is required to consider the petition
within six months and either deny the petition or open a
proceeding to adopt, amend, or repeal the regulation
addressed by the petition. If the petition is denied, the
CPUC shall state its reasons for denying it, and if the
petition is approved, the CPUC may use any process for
considering how to adopt, amend, or repeal the regulation.
This bill state legislative intent that this process not be
used to ask the CPUC to reconsider any or all of its
decisions or for asking the CPUC to reconsider recently
decided matters where there have been no changes in
circumstance. The bill further states legislative intent
that this process apply to rules of general applicability
and future effect, thereby excluding decisions regarding
individual company rate cases.
KEY QUESTIONS
1.Does the benefit of giving parties another way to force
the CPUC to reconsider many of its prior decisions
outweigh the risk that this access will be abused by
parties seeking multiple bites at the apple?
2.Will the provision allowing the CPUC to use any process
to consider modifying a regulatory decision actually
close access to the decision-making process for some
parties?
BACKGROUND
Making Sure Everyone Has A Voice . This bill was introduced
to further the discussion concerning regulatory change at
the CPUC and to ensure that interested parties, such as
utilities and consumer groups, can bring issues before the
CPUC and have them dealt with in a timely manner.
The author notes that the Administrative Procedures Act
specifically authorizes interested parties to file
petitions with state agencies regarding regulations and to
have those petitions responded to in a timely manner. This
bill arguably extends those same provisions to the CPUC
decision-making process.
COMMENTS
1.Horse & Buggy Regulations . Supporters of this bill
contend it provides interested parties with a way to
force the CPUC to reconsider decisions which the parties
think are unthoughtful or dated.
2.How Many Bites Does That Apple Have In It? It should be
noted that while the bill provides interested parties
with better access to the CPUC's decision-making process,
this "access" could also be used by disgruntled parties
who simply want a third and fourth bite at the apple.
Parties who have lost a decision at the CPUC already have
a "second" bite - they can petition the CPUC for
rehearing. This bill allows those same parties to
petition the CPUC again and again, each time forcing the
CPUC to respond, though this type of abuse is discouraged
in the bill's intent language.
The bill clearly makes it easier to contest CPUC
regulations, but because the CPUC regulations fall
heaviest on the incumbent utilities, it should be clear
that those parties are the most likely to take advantage
of the new opportunity presented by this bill.
1.What Does "Any Process" Mean? Page 3, Lines 22-25 of the
bill states that in the event the CPUC accepts a petition
to modify a regulation, the CPUC is permitted to use any
process to consider that modification.
Consequently, if a regulation was developed using an
evidentiary process, the CPUC could amend that regulation
using a less rigorous public notice and comment process,
which doesn't require evidence or permit cross
examination.
The author and Committee may wish to consider whether it
would be more consistent to, if the CPUC agrees to modify
a regulation, require it to use the same process it used
to create the regulation initially. Therefore, if a
regulation was created using an evidentiary hearing
process, then it should be modified using an evidentiary
hearing process; if it was a public notice and comment
process, then the modification should be made using a
notice and comment process.
ASSEMBLY VOTES
Assembly U & C (10-0)
Assembly Floor (76-0)
POSITIONS
Support:
Building Owners and Managers Association of California
California Municipal Utilities Association (CMUA)
GTE
PUC
Oppose:
None reported to Committee.
Randy Chinn
AB 301 Analysis
Hearing Date: July 13, 1999